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Research Outline
Prepared for Amin O. | Delivered June 11, 2020
Software, Technology, and technology-enabled Businesses in the U.S.
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Goals
To provide the number of software businesses, technology businesses, and technology-enabled businesses in the U.S. that generate revenues of $1 million - $50 million, in order to understand the size of this segment of the market.
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Early Findings
Estimate of Small Businesses in the Information Technology Industry in the U.S.
There are more than
557,000
software and IT services
companies in the U.S.
Tech startups/new business units launched in 2019 were estimated at
13,400
businesses.
According to Gartner, "small business is usually defined as organizations with less than
$50 million
in annual revenue."
In addition, SBA sizes software publishers (responsible for producing and distributing
computer software
), under the
NAICS code 511210
, as those with revenues of
$41.5 million
.
According to the Small Business Association (SBA), small businesses in the U.S.accounted for
99.9%
of all U.S. businesses in 2019.
Assuming that this proportion is accurate for the software and IT services sector, then there are about 556,443 (
99.9%
of
557,000
) small software and IT services businesses in the U.S.
The proprotion of the key categories in the U.S. IT industry are: software,
20%
; devices and infrastructure,
17%
; IT + business services,
30%;
emerging tech,
13%
; and telecom services
20%
.
Summary of Findings
In this preliminary hour of research, we determined that information on the number of software businesses, technology businesses, and technology-enabled businesses in the U.S. generating between $1 million and $50 million in revenue is not publicly available.
We have used available information to triangulate a rough estimate of the number of software and IT services businesses with revenues of $50 million and below.
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